Federal prosecutors made clear at a hearing Tuesday morning that state Sen. Derrick Shepherd remains in their sights for possible fraud and money-laundering charges.

An FBI agent testified Monday that Shepherd had laundered approximately $141,000 by cashing checks sent to bond broker Gwendolyn Joseph Moyo and then returning approximately half the money to her.

Moyo could not cash the checks herself because they were made out to her business, which last year had its bank accounts seized by the state Department of Insurance, the agent said.

On Tuesday, Assistant U.S. Attorney Mike Magner introduced two new documents into evidence -- one purporting to be a contract for legal services between Shepherd and Moyo. It was not signed by Moyo.

The second document was a "settlement statement," Magner said. It was signed by both parties.

Shepherd provided the documents to federal authorities, presenting them as evidence that his dealings with Moyo were on the up-and-up, Magner said.

However, prosecutors regard them as suspicious.

"We believe this is further evidence of fraud and money laundering," Magner said. "This represents an attempt to make (Shepherd's representation) look like something other than it was."

After the hearing, Moyo's lawyer, Pat Fanning, said he believes the dealings between Moyo and Shepherd were "legitimate and above board." He said he also believes Moyo hired Shepherd to help resolve her run-in with the Department of Insurance.

Shepherd, who has not been charged with a crime, has denied wrongdoing. He was re-elected to his Senate seat Saturday by a wide margin.

The purpose of Tuesday's hearing was to determine where Moyo, who has been arrested but not charged, should be detained while her indictment and trial looms. U.S. Magistrate Judge Alma Chasez ordered Moyo to remain in the federal wing of Orleans Parish Prison, noting Moyo's criminal history and saying she could be a flight risk.